Supes receive investment, budget reports

Wednesday

Feb 13, 2013 at 1:51 PMFeb 13, 2013 at 1:55 PM

By Kent MillerDaily Independent Corespondent

The focus was on money at Tuesday’s Kern County Board of Supervisors’ morning and afternoon sessions.Some of the money was front-and-center, some may be absent.“It’s not a good year for investment funds,” Paul Angelo, chief actuary for The Segal Company, told supervisors in his report on the Kern County Employees’ Retirement Association funding status.The target goal for the retirement plan funding is 7.75 percent a year, but the result for July 1, 2011 to June 30, 2012 was 0.6 percent, Angelo said.However, with a rolling five year “smoothing method,” the average rate of return is 4.5 percent, he said. And the rate of return for all of 2012 was much higher, Angelo said.Mick Gleason, First District supervisor, asked if the 0.6 percent return was typical among California counties as of June 30 and was told that it was.The investment rate of return determines the funded ratio for the plan, Angelo said. The KCERA plan has a funded ratio of 60.5 percent, which is determined by dividing the nearly $3 billion actuarial value of assets by the nearly $5 billion actuarial accrued liability, he said. Actuarial losses lead to an increase in plan contribution rates, according to information presented to the board by Anne M. Holdren, executive director of KCERA.Kern County retirement plans serve about 9,000 former employees. The county has about 7,500 current employees. BudgetsIn another money-matter, supervisors were given a mid-year status report for Fiscal Year 2012-13, through Dec. 31.The General Fund Budget is running consistent with the adopted budget, according to a report from John Nilon, county administrative officer. One major change was the release of $12 million from the General Fund Designation for Infrastructure Replacement that was transferred to a capital project fund for the jail facility being built under Assembly Bill 900, state financing program, Nilon noted.One-time construction activity has sales and use taxes higher than base-line budget estimates, he reported.There is good news regarding tax revenue as of Dec. 31 in the CAO’s report. Property taxes are up $2.1 million, sales and use tax up $5.2 million, and sales and use tax in lieu up $5.5 million. In addition, the county will receive about 41 percent more this fiscal year than in 2011-12 in realignment of state program responsibilities and revenues to local governments.For the 2013-14 Fiscal Year, the supervisors will receive a preliminary budget on June 11, with budget hearings to start Aug. 24, said Nancy Lawson, county budget director.“This is a good time to make ... a request for additional staff for the Rural Crimes unit,” said 4th District Supervisor David Couch.A big question mark for the budget is a possible $2.5 billion change in assessed value for Occidental Petroleum’s Elk Hills property. That could cost the county millions if Oxy’s objection to its tax bill is approved.Assistant Assessor Tony Ansolabehere said that Oxy’s taxes – figured in January 2012 and due in December 2012 – might have been based on a value that is $2.5 billion too high. Oxy was both late and inaccurate in filing value information with the county, causing the previous year’s information to be used, Ansolabehere said.“They were billed on the prior year because there was no current year information,” he said. “We hope by April to have a determination – but it can be appealed if there isn’t an agreement on value.“They can sue the county if they don’t like the ruling.”The taxes for oil property is based the future revenue stream, Ansolabehere said.“A lot of people will say what about the Monterey Shale discovery,” Couch said.Ansolabehere replied: “The discovery isn’t proven. There is no evidence that anyone is paying for that value. There’s no evidence the value is there yet. If we think the value is there, we will put it on the (tax) roll.”Abatement workSupervisors confirmed costs incurred for previous nuisance abatement work on two properties in the unincorporated area of Taft. Both properties are on D Street.The cost to remove a nuisance structure at 215 D St. was $17,848.21. If the owner doesn’t reimburse the county within 10 days for the cost, a lien that constitutes a special assessment will be placed against the property.The second property is at 225 D St. The cost to remove a nuisance structure on that property was $21,538.79. Again, if the owner doesn’t reimburse the county within 10 days for the cost, a lien that constitutes a special assessment will be placed against the property.HonorsA certificate of Recognition was presented by Supervisor Gleason to the Associated Veterans of Bakersfield for their continued support of Kern County Veterans.“I want to take a moment to recognize the contributions of this group,” Gleason said. “They have volunteered many hours to returning veterans ... (and) conducting services at funerals.”The group has served at up to 374 funerals for veterans in a year and conducted 31 services in January, he said.In other actions, supervisors proclaimed the period of March 1-7 as National Weights and Measures Week in Kern County.And they also adopted a resolution honoring the Assisteens Auxiliary of the Assistance League of Bakersfield on the group’s 50th anniversary and for “outstanding service” to the county.AppointmentsSupervisors approved a group of appointments:* Gregory Joseph McGiffney has been reappointed as the 4th District member of the Parks and Recreation Commission, to serve to January 2017.* Howard Ellsworth Matney has been reappointed as the 4th District member of the Wildlife Resources Commission, to serve to Dec. 31, 2016.* Paul Rubadeau and David “Harry” Hosking have been reappointed as at-large members of the West Side Mosquito and Vector Control District, to serve to Jan. 1, 2015.

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